We got a huge down move and we can see below the weekly reversals(pink), specifically the 4th at 4427.60 is holding at mid day on Friday. Waiting for the close for any confirmation of the move. Below image sums up what we may have coming in the weeks ahead.
In Summary:
- Close below 4427.60 today, higher probability of moving lower into end of Feb
- Hold 4427.60 on a close, consolidation — New highs above Dec not likely yet…
- If March gets S&P500 to 3990 area (SPY: 399) — looking to go long
Let’s see how next two weeks are handled. But we have likely consolidation and volatility moving higher into the next two weeks.
Weekly Close Price
We closed below the 4th weekly bear. While we may see a rally due to overselling. Caution on rallies, we can retest the elected weekly reversals(Pink) and then move to next ones lower at 4370 area. If this gets taken out… 4288 is next.
Todays Mid-Day Price
Yesterdays Price
Outside Reversal Pattern Caution
On a monthly time frame, January was an outside reversal. December was a turning point and this hints that a new high above December may be tough before March.
Yes, we can rally if the weekly 4th bear holds, but consolidation likely with this setup. February is a turning point and a better setup would be in March if timing is right.
Note: This is not trading advice, just observations and private study. 😉